U.S. retail sales dropped by the most in nearly two years in January, likely because of frigid temperatures and moderation following hefty gains in the past four months, suggesting a sharp slowdown in economic growth early in the first quarter.

U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors and dented sales at car dealers and most other stores.

U.S. retail sales fell more than expected in January, dropping a seasonally adjusted 0.9% from December to $723.9 billion, the Commerce Department said. Economists surveyed by The Wall Street Journal had expected a drop of 0.

The advance report for retail sales plummeted by 0.9 percent for January, offset only modestly by upward revisions to prior months. Read more here.

Retail sales fell 0.9% in January, the steepest drop in nearly two years, as consumers were held back by California wildfires, unusually frigid conditions, and uncertainty around the outlook for tariffs.